Coinbase Institutional and Glassnode, in their joint market report for the third quarter of 2026, stated that they maintain a neutral outlook for the cryptocurrency market.

According to the report, the total cryptocurrency market capitalization, excluding stablecoins, declined by approximately 12 percent in the second quarter of the year. However, stablecoin supply reached an all-time high, indicating increased liquidity held by investors outside the market.

On-chain data suggests Bitcoin may be transitioning from a correction and rebalancing phase to an accumulation period. The report notes that Bitcoin valuations are under pressure, the recently moved supply has fallen to its lowest levels in several years, and the percentage of supply in profit has dropped below its historical low.

Coinbase Institutional and Glassnode have noted that similar indicators have historically tended to coincide with accumulation phases rather than distribution phases.

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However, the report added that macroeconomic liquidity conditions remain tight. The hawkish monetary policy stance of the US Federal Reserve under Kevin Warsh and the relative strength of the dollar are causing continued pressure on risky assets.

Geopolitical risks, potential selling pressure from digital asset treasuries, and net outflows from Bitcoin and Ethereum spot ETFs seen in the first half of the year were also cited as other factors limiting the market outlook. While the pace of outflows from ETFs has reportedly slowed recently, the overall market environment remains cautious.

According to the report, while on-chain indicators for Bitcoin are generating positive signals for long-term investors, a stronger upward trend requires a significant improvement in global liquidity conditions.

*This is not investment advice.